RCH Receives Potable Water Supply Agreement from North Texas Municipal Water District

Dear RCH Members,

I am pleased to share a significant milestone in our ongoing efforts to secure a reliable water supply for our members. RCH has received the North Texas Municipal Water District (NTMWD) agreement, a crucial step forward in ensuring an ample water supply for our current and future needs.

This achievement results from collaborative efforts, and we sincerely appreciate NTMWD's cooperation throughout this process. The RCH board approval of the agreement is a priority agenda item for our upcoming RCH Board meeting. The summary below outlines important details of the agreement. You can review the entire document here.

Executive Summary

Parties Involved:

This Contract involves the North Texas Municipal Water District (NTMWD) and the RCH Water Supply Corporation (Customer).

Background:

Authorized under Chapter 62, Acts of the 52nd Legislature, 1951, the Interlocal Cooperation Act, and other applicable laws, NTMWD and RCH are empowered to enter into this Contract—currently, RCH purchases potable water from the City of Rockwall, a Member City of NTMWD.

Contract Details:

The Contract establishes terms for the sale and delivery of potable water, including a maximum annual delivery of 838,040,000 gallons. Additionally, there is a commitment to reduce Rockwall's annual minimum purchased quantity once RCH enters into a potable water supply contract with NTMWD.

The 838,040,000-gallon maximum annual allotment from North Texas is equivalent to a peak daily capacity of over 5 million gallons per day. Our current contract with Rockwall is for 2.1 million gallons per day. (The peak daily capacity is calculated by dividing the annual allotment by 365 to arrive at the contractual average daily capacity and multiplying it by a peaking factor of 2.2.)

Delivery and Quality:

NTMWD agrees to deliver potable water to RCH at specified Points of Delivery, with RCH responsible for constructing and operating facilities to regulate water delivery. The supplied water must meet state and federal quality standards.

Payment Terms:

RCH agrees to pay NTMWD based on the Water Rate established by the Board of Directors. The contract includes a minimum annual payment, with applicable excess water charges if usage exceeds specified limits.

Contract Duration:

The Contract spans twenty (20) years, commencing on the Contract Date.

Operating Conditions and Water Conservation:

NTMWD commits to the efficient operation and maintenance of the water supply system. Both parties agree to adhere to water conservation measures and drought contingency plans, with RCH required to submit and amend plans for approval by NTMWD.

This Contract establishes a framework for cooperation over twenty years, emphasizing water quality, delivery, payment, and adherence to conservation measures. It reflects our commitment to collaborative dispute resolution and compliance with relevant laws and regulations and provides ample water to facilitate our current and future needs.

Best regards,

David Naylor

Board President

RCH Water Supply Corporation